ISLAMABAD: Interim government has kept Petroleum Levy (PL) rate on Hi-Octane blending component (HOBC) fuel unchanged at Rs 50 per litre against Rs 60 per litre levied on low grade (motor gasoline).

In the last review, the price of HOBC declined by Rs 9 per litre starting from January 16, 2024, an owner of petrol station told this correspondent. Oil and Gas Regulatory Authority (OGRA) does not control Hi-Octane petrol price in Pakistan and individual Oil Marketing Companies (OMCs) which import the fuel set its price which accounts for Hi-Octane prices varying across different petrol pumps within one city.

Pakistan State Oil (PSO) has fixed the Altron X 97 Hi-Octane price at Rs 290.88 per litre HOBC. Attock Petroleum Company Limited (APL) is selling at Rs 300 per litre Xtron Hi-Octane. Shell V-Power Octane price is Rs 295 per litre. The price difference between Hi-Octane and petrol is around Rs 33 per litre at present.

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The international price of HOBC 97 Ron remains at around $95-96 per bbl since January 1, 2024 against $94-95 per bbl in December 2023.

An official of Petroleum Division told Business Recorder on the condition of anonymity that the government is collecting around Rs 160 million PL per month on the fuel since 16 November, 2022 when Pakistan Democratic Movement (PDM) Government raised PL on HOBC from Rs30 to Rs50 per litre.

According to an OMC estimate, HOBC consumption is around 300 metric tonnes per day which amounts to a total consumption of 9,000 metric tonnes in a month.

OGRA repeatedly asked the OMCs not to take undue advantage of deregulation of high octane by charging high prices.

The high-octane blended fuel is used by luxury and imported cars. Compared to ordinary petrol (motor gasoline), HOBCs main use is improved mileage and better engine performance. The market for the fuel however remains limited due to affordability.

Copyright Business Recorder, 2024